Cramer's 'Mad Money' Recap: Don't Trust This Rally

Wind Plays

With so much of last week's selloff driven by hedge fund redemptions, Cramer said the time is right to buy wind power plays Trinity Industries (TRN) and Broadwind Energy (BWEN), both of which have have seen their shares beaten down by hedge funds.

"The time for wind has never been better," said Cramer. With the recent passage by Congress of an extension for wind tax credits, he said the bull market in wind continues to improve. Texas, for example, is spending $5 billion on wind power, while New Jersey recently allocated $1 billion for its first offshore wind power facility.

Trinity has been pushed down over 40% from year ago levels, but continues to transform itself from a railcar- to wind-power play. The company currently derives only 30% of its revenues from rail, down from 54% a year ago, and expects to see $800 million to $900 million in revenue from wind power by 2014.

"Broadwind is an outright buy under $8 a share," said Cramer, noting that the company continues to help build new wind facilities and expand its precision gear systems.

In both cases, Cramer said the current share price only reflects broken stocks and not broken companies. He said the case for wind power is stronger now than when he first introduced his "Wind-ex" index of wind stocks earlier this year.

Girded for a Recession

When it comes to Chesapeake Energy (CHK), Cramer told viewers not to be concerned with CEO Aubrey McClendon's recent sale of company stock. He said the natural gas provider is still a buy.

Cramer reminded viewers that even after Monday's run, Chesapeake is still $6 a share lower than where it was a week ago. He said he'd buy one-fourth of a position now at current levels, and purchase more on any weakness.

Cramer still likes the natural gas story, especially Chesapeake's. The company has no debt due until 2012 and sports huge cash flows, giving it the liquidity it needs to operate in tough credit environments.

Chesapeake has also hedged 81% of its 2008 production at levels $3 higher than current natural gas prices and continues to hedge portions of its 2009 and 2010 production at favorable levels.

With 63% of US homes heated by natural gas, Cramer said Chesapeake is set to weather even a harsh recession. The company also has assets to sell in the unlikely event it needs more cash.

Pulling Back

Cramer checked in with David Steiner, CEO of Waste Management (WMI), to get the low-down on the company's decision to withdraw its bid to acquire competitor Republic Services (RSG).

Steiner said that while he still likes what Republic can offer the company, he was not prepared to take on the financial risk during uncertain times. He said investors look to Waste Management for solid, dependable earnings and he's going to continue to generate cash for his shareholders.

Asked what the company might due with the cash on its balance sheet, Steiner said he's considering a stock repurchase plan and boosting the company's dividend, but he also said he'll proceed cautiously due to current market conditions.

Cramer reiterated his buy on Waste Management, with its 3.5% dividend yield and consistent management.

Lightning Round

Cramer was bullish on Apple (AAPL), Research In Motion (RIMM), Sysco (SYY), Petrobras (PZE), Enterprise Products Partners (EPD), Cypress Semiconductor (CY) and Service Corp (SCI).

He was bearish on Microsoft (MSFT), Google (GOOG), Cemex (CX), Manitowoc (MTW), Precision Castparts (PCP) and Dell (DELL).

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